THE HOMEBUYER'S GUIDE
Thinking about moving our buying your first home? Read on...
If you are beginning the process of buying your first home, selling to buy a bigger property or even downsizing once the kids have flown the nest, you may find that the property market is an unknown entity, full of potential pitfalls, doubts
and unexpected costs. Couple that with the looming uncertainty of BREXIT, and you have a complicated process. In this guide, we aim to demystify homebuying and give useful advice for each stage of the process.
FIRST-TIME BUYERS
So, you’re about to make the biggest investment of your life so far. Scary, right? There’s a lot to think about, and a lot of costs you will not have even considered until the process has started. Where to begin? Your mortgage is the first thing you should think about, because until
you have your decision in principle, you will not know what you can afford to buy. By going to an independent mortgage advisor, you will have the choice of many different banks and building societies, so you can assess options like the term of your mortgage, fixing interest rates and any cash back offered.
Viewing Houses
This is probably the most fun bit of
the process, because you get to know your tastes and can have a look around some lovely properties in the process. Rightmove is a great resource, as is Zoopla for comparing prices in an area. As well as relying on these sites, it is vital that you make yourself known to lots of different local agents. Let them know in as much detail as possible what requirements you have (location, number of bedrooms, garden, garage etc) and your upper price limit. A good agent will let you know about properties about to come to the market, helping you get a head start on other buyers.
Viewing Tip - When viewing houses, try to take some pictures (with the estate
agent’s permission) on your phone as
an aide memoir and if you have furniture from renting to fit in, take a tape measure and see if it would fit in the space.
CONVEYANCING
So, once you’ve found the property you want, you will need to employ a solicitor to do the conveyancing for you. Before deciding on one, we recommend emailing or calling around for some quotes to make sure you get a competitive rate.
CHARTERED SURVEY
Unless the property you are buying is less than 10 years old, it really does make good sense to have a survey. Most surveyors offer a choice between a RICS Homebuyer Report or a Building Survey. Send over the property details you have and they will help you decide on the best survey for peace of mind. Once again, it does pay to enquire with a few different firms to keep prices competitive and
to find the right surveyor for the type of property you buy.
Surveying Tip - If you are buying a flat, it can be difficult to know whether you need to have a full building survey (formerly called a structural survey). If you are buying a flat in a listed or older building, talk to your surveyor about whether they can offer a special package for you.
SELLING
Over the past few years, the property landscape really has become a seller’s market. With a high demand for property, estate agents are having to be creative
in the way they compete for instructions. This is great news if you are selling, as you can ask them to be competitive in the rates they offer.
Surveying Tips - It is likely that you will need to provide certificates or
documentation of any major work you have had done on your home in the last 10 years, primarily electrics.
De-clutter before the estate agent comes to take photos. Your home needs to be a blank canvas, so the potential buyer can imagine their possessions there, without yours dominating their vision.
MOVING
So, you’ve accumulated quite a lot of stuff eh? Here are our top tips to make moving easier:
• Start packing the areas of your home that you use the least. Pack essentials last.
• At least 8 weeks before the date, notify change of address for any subscriptions. • Pack early if you are using the services of a moving company. Also be sure
to label clearly and keep heavy boxes double taped so they don’t collapse.
• Bin anything you don’t love anymore. Start this process early, using a skip
for unsellable items and recycle others. Removals companies sometimes charge by volume, so reducing the amount you take with you cuts costs.
Help to Buy?
The Help to Buy scheme has just celebrated it’s fifth birthday - since April 2013, more than 300,000 first-time buyers have used its various schemes to purchase their first home, according to data from the Ministry of Housing, Communities & Local Government (MHCLG).
One of the main benefits of Help to Buy is that buyers can purchase a home with a 5% deposit and a 75% mortgage – with the gap filled by an equity loan of 20% (or 40% in London) provided by the government. This means they can access considerably cheaper mortgage rates than if they were applying for a standard 95% mortgage.
These deals are attractive, but it’s important to remember that the government will hold a 20% stake in your property until you pay off your equity loan. Talk to an independent mortgage advisor to find the right solution for you.
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BREXIT SCHMEXIT?
Whilst BREXIT has created caution in the property market, Winkworth Estate agents note a change in demand, “properties priced correctly are still selling well.
The current market is being driven by ‘needs-based’ buyers looking for value rather than investment. As such, small
to medium-sized flats have dominated transactions. A shortage of supply for good size family homes means they are being snapped up when they become available. Overall, although sentiment is very different to this time four years ago, it’s evident that there is still stability in the market, and we expect it to remain much the same for some time until a clearer outlook for the UK is given.”